California Statute of Limitations for Credit Card Collection

California's statute of limitations on debt doesn't prevent legitimate collection efforts to recoup unpaid credit card debts. The statute only limits the legal action that collection companies may take against residents to collect delinquent debts. Still, Californians should understand the law or consult with an attorney to protect their rights.

California Statute

The statute of limitations on debt is the amount of time that a creditor or debt collector has to file a lawsuit against consumers to collect unpaid debts. The statute varies from state to state. California's statute of limitations on credit card debt is four years. However, debts aren't erased by the state statute. Unpaid credit card debt is collectible as long as it hasn't been paid off, forgiven by the creditor or discharged by a bankruptcy court.

Debt Collection

Debt collection companies have the right to contact Californians in an attempt to collect delinquent credit card debts even if the statute of limitations has expired on a debt. The expiration only prevents a company from filing a lawsuit to recoup an unpaid debt. It doesn't stop collection calls and delinquency notices. Nonetheless, the U.S. Fair Debt Collection Practices Act gives consumers the right to send written notices to debt collectors to tell them to stop contacting them.

Account Activity

The last date of activity on a credit card account determines whether the statute of limitations on the debt has expired. A Bankrate.com article titled "Can Paying Old Bills Hurt Your Credit?" says the last date of activity refers to the last payment made on the account. The statue of limitations generally has expired on California credit card debts that haven't been paid in more than four years. However, any type of payment or payment arrangement made with a collector is counted as activity on an account. That activity may restart the statute of limitations on an old debt and make a consumer vulnerable to legal action by a collector.

Considerations

Some debt collection companies may attempt to sue consumers to collect debts, even after a state statute of limitations has expired. In such cases, people should consult with an attorney to get help in handling the case. Furthermore, you should respond to a lawsuit even if you're sure the statute of limitations has expired and a collector has no right to sue to recoup a debt. Consumers who don't respond to such suits risk having a court decide in the collector's favor.